U.S. Tourism Faces Steep Decline Despite Global Travel Growth

The United States is facing a sharp decline in tourism revenue in 2025, with losses potentially reaching close to $29 billion. This setback comes amid a global travel boom, making America’s downturn all the more striking. The root causes primarily involve political and policy decisions that have discouraged international visitors, notably stricter immigration rules, increased visa costs, and the strength of the U.S. dollar.

According to the World Travel & Tourism Council (WTTC), international visitor spending in the U.S. is expected to fall to just under $169 billion this year, down from $181 billion in 2024. This drop of $12.5 billion marks the largest decline among 184 countries analyzed globally and makes the U.S. unique among major economies in experiencing shrinking inbound tourism revenue in 2025. The WTTC’s research highlights that this trend is not the result of waning demand for travel but rather a failure by government to adapt policies that facilitate visitor entry and spending. 

Tourism Economics, a division of Oxford Economics, paints a broader picture, estimating the total economic impact, including secondary effects on local jobs and related businesses, to be between $25 billion and $29 billion in lost revenue this year. Visitor arrivals are tipped to drop about 8.2% compared to the previous year, a steep decline that hits leisure travel particularly hard. This downturn affects businesses and communities across the country that rely heavily on the financial contributions of international tourists. 

Political decisions during the Trump administration remain a significant factor in this collapse. Policies such as tightened border security, higher visa fees, and tariffs on trade partners have fostered a negative sentiment among prospective travelers. The perception of the U.S. as a less welcoming or more difficult destination to visit has been reinforced by government rhetoric and immigration postures, deterring visitors who might otherwise have chosen America for their travels. Flight reservations decreased notably in key source markets like Europe and Canada, with some regions experiencing declines in bookings as high as 33%. 

The ripple effects extend beyond tourism itself. The travel and tourism sector is a vital part of the U.S. economy, contributing roughly 3% to GDP and supporting around 4% of all employment. As a labor-intensive industry, it plays an outsized role in job creation, particularly in leisure and hospitality where it accounted for 16% of all private-sector new jobs last year. When international visitation falls, the consequences are felt by hotels, restaurants, tour operators, retail shops, air travel, and even educational institutions that rely on international students. 

Globally, travel spending is surging to historic levels, with the WTTC forecasting international visitor expenditures worldwide to reach a record $2.1 trillion in 2025. Yet the U.S. bucks this trend by sliding backward despite having one of the largest travel and tourism economies in the world. Other major destinations are benefiting from more open policies and promotional efforts to attract foreign travelers, underscoring the competitive disadvantage the U.S. currently faces. 

The financial hit totals almost $29 billion, a figure driven largely by fewer international tourists and the adverse effects of political and policy decisions. For businesses and communities that have grown dependent on international arrivals, the challenge is immediate and serious. The experience serves as a reminder that tourism is not simply about meeting demand but requires proactive, welcoming policies that encourage and facilitate travel.

Unless policies change, this decline risks deepening and extending into 2026, leaving hotels emptier, jobs more vulnerable, and local economies weaker. The U.S. economy’s core strength in travel and tourism depends on reversing current trends and regaining the trust and interest of the world’s travelers.